What was the total cost of goods sold for Basecamp Fitness in 2022?
Basecamp_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands of US dollars) | 2024 | 2023 2022 | |
|---|---|---|---|
| Revenues | |||
| Franchise royalties | $ 145,245 $ 61,387 | $ 58,105 | |
| Franchise fees | 20,063 | 14,390 11,096 | |
| Sales | 78,248 | 41,857 42,586 | |
| Advertising fund revenue | 16,379 | 17,607 17,531 | |
| Vendor rebates | 55,950 | 47,825 42,115 | |
| Other revenues | 1,124 | 1,016 700 | |
| Total revenues | 317,009 | 184,082 172,133 | |
| Cost of goods sold | 43,354 | 18,835 18,554 | |
| Gross profit | 273,655 | 165,247 153,579 | |
| General and administrative expenses | 89,493 | 64,416 48,492 | |
| Advertising fund expense | 16,638 | 18,948 16,682 | |
| Total general, administrative, and advertising fund expense | 106,131 | 83,364 65,174 |
Source: Item 23 — RECEIPTS (FDD pages 62–248)
What This Means (2025 FDD)
According to Basecamp Fitness's 2025 Franchise Disclosure Document, the total cost of goods sold for 2022 was $18,554,000. This figure represents the direct costs associated with equipment sales, including freight costs, to new and existing franchisee-owned clubs and studios both in the U.S. and internationally.
For a prospective franchisee, understanding the cost of goods sold is crucial as it directly impacts the profitability of their franchise. Basecamp Fitness's cost of goods sold primarily includes the expenses related to equipment sales, which are essential for setting up and maintaining a fitness studio. The FDD specifies that these costs also encompass freight and installation expenses, providing clarity on what contributes to this financial aspect.
The document also clarifies that the company records costs related to shipping and delivery in cost of goods sold. This is important for franchisees to note, as these expenses can fluctuate based on various factors such as location, supplier costs, and shipping rates. Therefore, franchisees should carefully consider these variables when projecting their potential earnings and expenses.
It's worth noting that the cost of goods sold can change primarily based on equipment sales volume. This means that as a franchisee expands their operations or upgrades equipment, they can expect these costs to vary accordingly. Therefore, franchisees should maintain a close watch on their sales volume and associated costs to effectively manage their financial performance.